YOOZOO(SZ:002174)2023-04-28 16:00Revenue and Profit Performance - Revenue in 2022 decreased by 38.19% to 1.98 billion RMB compared to 3.20 billion RMB in 2021[20] - Net profit attributable to shareholders in 2022 was -634.83 million RMB, a decrease of 478.16% from 167.87 million RMB in 2021[20] - Revenue for 2022 was RMB 1.98 billion, a decrease of 38.2% compared to RMB 3.20 billion in 2021[41] - Main business revenue (after deducting other income) for 2022 was RMB 1.98 billion, down 38.2% from RMB 3.20 billion in 2021[41] - The company's revenue in 2022 was 1.981 billion yuan, a year-on-year decrease of 38.19%, with a net loss attributable to shareholders of 635 million yuan[159] - Total revenue from software and IT services was RMB 1.975 billion, down 38.23% YoY, with mobile games contributing 74.84% of revenue[183] - Domestic revenue was RMB 711.76 million, down 40.44% YoY, while overseas revenue was RMB 1.269 billion, down 36.86% YoY[183] Cash Flow and Financial Position - Operating cash flow in 2022 decreased by 51.76% to 157.52 million RMB compared to 326.52 million RMB in 2021[21] - Total assets at the end of 2022 decreased by 9.56% to 6.28 billion RMB compared to 6.94 billion RMB at the end of 2021[21] - Shareholders' equity at the end of 2022 decreased by 11.60% to 4.54 billion RMB compared to 5.14 billion RMB at the end of 2021[21] - As of the reporting period, the company's debt-to-asset ratio was 27.69%, with a quick ratio of 2.32. Bank debt decreased by 50 million yuan, and cash and cash equivalents stood at 1.506 billion yuan[135] - Operating cash flow decreased by 51.76% YoY, mainly due to reduced cash received from sales[199] - Financing cash flow outflow increased by 85.41% YoY due to reduced loan repayments[200] Earnings and Shareholder Metrics - Basic earnings per share in 2022 were -0.72 RMB, a decrease of 478.95% from 0.19 RMB in 2021[21] - Weighted average return on equity in 2022 was -13.12%, a decrease of 16.41 percentage points from 3.29% in 2021[21] - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserve into share capital[25] Non-Recurring Gains and Losses - Non-recurring gains and losses for 2022 totaled RMB 458.59 million, a significant increase from RMB 173.88 million in 2021[46] - The company received RMB 17.06 million in VAT refunds, which were classified as recurring gains due to the sustainable nature of the tax policy[46] - The company's non-recurring gains included RMB 410.59 million from financial asset transactions and investments, a significant increase from RMB 98.15 million in 2021[46] - Non-current asset disposal gains and losses in 2022 were -82.1 million RMB, compared to 48.7 million RMB in 2021 and 43.4 million RMB in 2020[59] - Net profit attributable to shareholders decreased due to a RMB 330 million fair value loss on financial assets and a RMB 106 million asset disposal loss from discontinued game projects[180] Quarterly Performance - Q1 revenue was 544.7 million RMB, Q2 was 479.1 million RMB, Q3 was 437.8 million RMB, and Q4 was 519.0 million RMB[59] - Net profit attributable to shareholders in Q1 was 79.9 million RMB, Q2 was -9.0 million RMB, Q3 was 3.1 million RMB, and Q4 was -708.9 million RMB[59] - Net cash flow from operating activities in Q1 was 142.0 million RMB, Q2 was -1.0 million RMB, Q3 was 53.1 million RMB, and Q4 was -36.6 million RMB[59] Market and Industry Trends - China's game market actual sales revenue in 2022 was 265.884 billion yuan, a decrease of 10.33% year-on-year[79] - The number of game players in China decreased to 664 million in 2022, a year-on-year decline of 0.33%[79] - The actual sales revenue of self-developed games in the domestic market was 222.377 billion yuan, a year-on-year decrease of 13.07%[79] - The actual sales revenue of self-developed games in overseas markets was 17.346 billion USD, a year-on-year decrease of 3.70%[79] - Newzoo predicts that the global number of game players will grow to 3.6 billion by 2025, with game revenue reaching 210.2 billion USD[81] - The global gaming market size declined by 4.3% in 2022 to $1,844 billion, with the mobile gaming market experiencing the largest drop of 6.4% to $922 billion[102] Company Strategy and Operations - The company has accumulated over 1,000 overseas partners and operates in over 200 countries and regions, with nearly 1 billion global users[64] - The company's "Global Card+" strategy focuses on card games and fusion innovations like card+SLG, aiming to lower barriers for global users[65] - The company was ranked among the top 25 Chinese companies in the global mobile game market competitiveness report by Gamma Data in 2022[65] - The company's main business remained unchanged during the reporting period[39] - The company's financial indicators for 2022 showed no significant differences compared to previously disclosed quarterly and semi-annual reports[45] - The company has been experiencing negative net profits for three consecutive years, with the latest audit report indicating uncertainty in its ability to continue operations[57] - The company's financial reports showed no differences between Chinese and international accounting standards[44] - The company's R&D investment reached 555 million yuan during the reporting period, focusing on building an industrial production line and enhancing product quality and competitiveness[138] - The company's revenue declined due to a focus on precision and efficiency in product launches and advertising. Future product releases are expected to gradually increase revenue[134] - The company optimized its GR and PR processes and established a technical expert management committee to enhance technical capabilities and production efficiency[176] - The company's top five suppliers accounted for 45.09% of total annual procurement, with no related party transactions[173] Game Launches and Performance - The company's self-developed SLG mobile game "Infinity Kingdom" (War and Eternity) launched a full-platform public beta in Japan, and the agency product "Goddess Alliance: Chaos" landed in Europe, America, and Southeast Asia, receiving heavy recommendations from iOS and Google Play in multiple countries[97] - The company launched "Echocalypse -緋紅の神約-" (Scarlet Covenant) in Japan and Southeast Asia, which topped the free charts on both App Store and Google Play in Japan for multiple days and entered the top 10 best-selling charts in Japan, Thailand, and Singapore[97] - The company plans to launch several new games in 2023, including the innovative card game "Code: Walker," the card+SLG game "War and Eternity," and the turn-based card game "Shan Hai Jing Hua (Restart)"[98] - The company is developing a series of games based on the "Three-Body" IP, which are expected to be released to the market within the next 5 years[100] - The company's self-developed card game "少年三国志：零" (Young Three Kingdoms: Zero) was selected for the "2022 Shanghai Cultural and Creative Fund Project"[107] - The company successfully launched "Echocalypse -緋紅の神約-" (Scarlet Covenant) in Japan and Southeast Asia, which entered the top 10 best-selling charts on the App Store in Japan, Thailand, and Singapore, contributing to revenue growth in the fourth quarter[113] - The company's "新盗墓笔记" (New Tomb Raider) was launched in Europe, America, and Southeast Asia, receiving recommendations from App Store, Google Play, and App Gallery[113] - 《Echocalypse - 緋紅の神約-》 ranked in the top 10 of the Taiwan App Store bestseller list and won multiple awards including "GTA2022 Best Overseas Game" and "Top 10 Overseas Performance Game" in 2022. It successfully launched in Hong Kong and Taiwan markets in January 2023 and plans to expand to South Korea and欧美 markets in the future[121] - 《少年三国志：零》 launched in November 2020 and expanded to Hong Kong, Macau, Taiwan, Japan, South Korea, and欧美 in 2021. The game released 12 new versions during the reporting period and collaborated with intangible cultural heritage projects, earning recognition in the "2022 Shanghai Cultural and Creative Fund Project"[121] - 《Saint Seiya Awakening: Knights of the Zodiac》 updated over 50 times during the reporting period, introducing 12 new cards and hosting 6 major tournaments. The game's Creator Team generated nearly 50 million video views, contributing to player retention and new user acquisition[122] - 《Game of Thrones Winter is Coming》 received 6 Facebook recommendations since its launch in 2019 and was featured in Steam's Summer Sale. The game won the "Best Game 3D (Character/Scene) Art Design Award" at the 2022 CGDA and officially launched in China on February 17, 2023[123] - 《Infinity Kingdom》 received Google recommendations in over 160 countries and regions. It achieved top 3 in the iOS free chart during its full platform launch in Japan and is planned for a domestic launch in 2023[124] - 《新盗墓笔记》 maintained monthly major updates since its launch in September 2021. It conducted nearly 300 live streams and expanded to欧美 and Southeast Asia in October 2022, receiving recommendations from Apple and Google[126] - 《成 り上がり～華と武の戦国》 updated over 50 times during the reporting period, launching 10 new operational activities and expanding to欧美, South Korea, and Hong Kong/Taiwan in 2022[127] - The company launched "Goddess Alliance: Chaos" in the European and American markets, receiving significant recommendations on iOS and Google Play[142] - "少年三国志" (Young Three Kingdoms) has accumulated over 140 million registered users and generated over 6.6 billion yuan in global revenue[145] - "少年三国志 2" (Young Three Kingdoms 2) launched 11 major updates during the reporting period and won multiple awards, including "Players' Favorite Mobile Online Game"[146] - "Echocalypse -緋紅の神約-" (Echocalypse: Crimson Covenant) achieved the company's highest ranking on Japan's bestseller list and entered multiple regional markets[147] Corporate Governance and Management - Total compensation for directors, supervisors, and senior management in 2022 was 2.26 million RMB[70] - New appointments in 2023 include Wan Zheng as Chairman and Non-independent Director, and Sha Qingqin as CFO and Non-independent Director[70] - The company's board of directors has established a compensation and assessment committee to manage and evaluate the remuneration of directors, supervisors, and senior management[90] Policy and Regulatory Environment - The company has implemented strict measures for minor protection and anti-addiction, including real-name authentication and consumption limits[83] - The company has received policy support for game出海 (game going global) as part of cultural export initiatives[84] Financial Disposals and Deregistrations - The company disposed of Shenzhen Xiyu Graphic Design Co., Ltd. in November 2022[188] - The company deregistered Nanjing Youzu Information Technology Co., Ltd. in June 2022[189] - The company deregistered Shanghai Donglianbo Data Technology Co., Ltd. in January 2022[190] R&D and Innovation - The company was ranked among the "Top 20 Chinese Game Companies in R&D Competitiveness" for 2022, highlighting its strong R&D capabilities[156] - The company's software and information technology services segment achieved a gross margin of 40.12%, with mobile games contributing 1.482 billion yuan in revenue[163] Expenses and Cost Management - Sales expenses decreased by 25.01% to RMB 276.06 million, and R&D expenses decreased by 25.91% to RMB 302.93 million[194]